Title to your property gives you the legal right of ownership. Title insurance is financial protection against a loss arising from a defect in your title. Although a title search is conducted prior to the issuance of title insurance, there is no way to predict with 100% assurance that a title will not be disputed. The title insurer, however, will defend a future challenge or interest in the property, and the title company will bear all costs of such defense. In other words, Title Insurance is an indemnity contract, protecting the insured against loss or damage up to the amount of their policy.
There are two types of title insurance that are most commonly issued in a residential transaction.
Lender's Title Insurance Policy insures the priority of the lender's lien. It insures the lender that they have a first lien against the property. A lender will require that you purchase a lender's title policy in order to secure your mortgage. It protects the lender, not the borrower, and is issued in the amount of their mortgage.
Owner's Title Insurance Policy insures the interest of the homeowner in the property. This policy will protect the new owner's interest in the property and will cover the owner's loss arising from a valid claim up to the face amount of the policy; and the insurer will pay all defense costs. This policy is normally issued in the amount of the purchase price.
Benefits of an Owner's Policy:
* Modest one-time premium.
* Protection for as long as you and your heirs own the property. You are even protected against future claims after you sell the property.
Policy Protects Against:
* Claims by someone who has a hidden interest in your property
* Documents which are not signed, acknowledged, delivered or recorded properly
* Forgery, fraud, duress, incompetence, incapacity or impersonation
* Claims arising from undisclosed easements or boundary line disputes (if a survey has been purchased)
* Unmarketable title, which allows someone else to refuse to perform on a contract to purchase, lease or make a mortgage loan
* Liens recorded against the property during previous ownership
Since this is only a brief discussion about Title Insurance you may direct more specific questions to Judy Hauser, Business Development Account Executive with Residential Title Agency, LLC. She can be reached at 513-324-3918 or at Judy.Hauser@RTitleLLC.com.
There are two types of title insurance that are most commonly issued in a residential transaction.
Lender's Title Insurance Policy insures the priority of the lender's lien. It insures the lender that they have a first lien against the property. A lender will require that you purchase a lender's title policy in order to secure your mortgage. It protects the lender, not the borrower, and is issued in the amount of their mortgage.
Owner's Title Insurance Policy insures the interest of the homeowner in the property. This policy will protect the new owner's interest in the property and will cover the owner's loss arising from a valid claim up to the face amount of the policy; and the insurer will pay all defense costs. This policy is normally issued in the amount of the purchase price.
Benefits of an Owner's Policy:
* Modest one-time premium.
* Protection for as long as you and your heirs own the property. You are even protected against future claims after you sell the property.
Policy Protects Against:
* Claims by someone who has a hidden interest in your property
* Documents which are not signed, acknowledged, delivered or recorded properly
* Forgery, fraud, duress, incompetence, incapacity or impersonation
* Claims arising from undisclosed easements or boundary line disputes (if a survey has been purchased)
* Unmarketable title, which allows someone else to refuse to perform on a contract to purchase, lease or make a mortgage loan
* Liens recorded against the property during previous ownership
Since this is only a brief discussion about Title Insurance you may direct more specific questions to Judy Hauser, Business Development Account Executive with Residential Title Agency, LLC. She can be reached at 513-324-3918 or at Judy.Hauser@RTitleLLC.com.
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